This week, long and short disturbances intertwined, and zinc prices on the SHFE and LME fluctuated at highs [SMM Market Review - Weekly Price Commentary]

LME Zinc: At the beginning of the week, LME zinc had weak fundamental support. However, influenced by Trump's threat to impose additional tariffs on Europe, a softer US dollar index, and China's 2025 GDP meeting expectations, it stopped falling, stabilized, and maintained a fluctuating trend. Subsequently, as macro news was gradually digested, nonferrous metals fell broadly coupled with a continued increase in LME zinc ingot inventory, leading LME zinc to pull back. Then, a lower US dollar drove a slight rise in LME zinc, but Trump's agreement framework on Greenland caused the US dollar to rebound, shifting LME zinc's center lower. Afterwards, US inflation data largely met expectations, and coupled with Nexa suspending production at the Atacocha San Gerardo open-pit mine due to community blockades, indicating mine supply disruptions, LME zinc rose from low levels, with the overall center moving higher. As of 15:00 this Friday, LME zinc recorded $3,246.5/mt, up $37.5/mt, a gain of 1.17%.

SHFE Zinc: At the beginning of the week, continued inventory buildup of domestic zinc ingots, coupled with some end-user enterprises being about to take holidays and weak demand, pressured zinc prices on the upside. However, China's 2025 GDP data meeting expectations boosted market sentiment, and with support from LME, SHFE zinc maintained a fluctuating trend. Subsequently, influenced by LME's decline, SHFE zinc opened lower with a gap. The weak fundamental structure persisted, and SHFE zinc traded with fluctuations. Then, a rise in LME prices drove SHFE zinc higher, but as terminal galvanizing and other enterprises successively began holidays, demand support weakened, and prices pulled back. Afterwards, a decline in domestic zinc ingot social inventory, combined with overseas supply-side disruptions, pushed SHFE zinc higher again. However, constrained by weak domestic fundamentals, upward momentum was insufficient, leading to a pullback. As of 15:00 this Friday, SHFE zinc recorded 24,585 yuan/mt, down 165 yuan/mt, a loss of 0.67%.